Case: Taxpayer Not Entitled to Deduction for Unreimbursed Employee Business Expenses, Partnership Losses (T.C. Memo) ( IRC §162)

The taxpayer was not entitled to deduct unreimbursed employee business expenses or partnership losses, the U.S. Tax Court held, affirming the IRS’s determinations. Taxpayer, an individual, claimed deductions for unreimbursed employee business expenses related to his work as a power line worker and partnership losses from two businesses he owned interests in. The court found that Taxpayer failed to adequately substantiate the employee business expenses or establish that he was not entitled to reimbursement from his employer. For the partnership losses, Taxpayer did not provide sufficient evidence of his adjusted basis in either partnership to support deducting the losses under ...